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The Regional Location of Knowledge Based Economy Activities in Israel


  • Dafna Schwartz



The article analyzes the spatial location behavior of economic activity that is knowledge based, by decomposing the Knowledge-based Economy Index developed by the OECD (1999) and elaborated by Cooke and Schwartz (2003) into major components that represent groups with different characteristics. The spatial behavior is analyzed in Israel in the years 1995–2002. We find that business services and high tech services tend to concentrate in metropolitan areas. Business services are found in the main city and high tech services in the satellite urban ring, with the outer-cities becoming stronger over time. Public services supporting the knowledge-based economy are concentrated in the center of the country, though not necessarily in the principal city, and they can represent an important tool in regional policy. The high tech manufacturing is concentrated around the big cities, mainly around the main metropolis. The other knowledge-based manufacturing activities tend to leave for the periphery. Copyright Springer Science+Business Media, Inc. 2006

Suggested Citation

  • Dafna Schwartz, 2006. "The Regional Location of Knowledge Based Economy Activities in Israel," The Journal of Technology Transfer, Springer, vol. 31(1), pages 31-44, January.
  • Handle: RePEc:kap:jtecht:v:31:y:2006:i:1:p:31-44
    DOI: 10.1007/s10961-005-5011-9

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    References listed on IDEAS

    1. Auranen, Otto & Nieminen, Mika, 2010. "University research funding and publication performance--An international comparison," Research Policy, Elsevier, vol. 39(6), pages 822-834, July.
    2. Wesley M. Cohen, 2005. "Patents and Appropriation: Concerns and Evidence-super-1," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 57-71, January.
    3. John C. Haltiwanger & Ron S. Jarmin & Javier Miranda, 2010. "Who Creates Jobs? Small vs. Large vs. Young," NBER Working Papers 16300, National Bureau of Economic Research, Inc.
    4. Donald F. Kettl, 1997. "The global revolution in public management: Driving themes, missing links," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(3), pages 446-462.
    5. Freeman, Christopher & Soete, Luc, 2009. "Developing science, technology and innovation indicators: What we can learn from the past," Research Policy, Elsevier, vol. 38(4), pages 583-589, May.
    6. Ulrich Schmoch & Torben Schubert & Dorothea Jansen & Richard Heidler & Regina von Görtz, 2010. "How to use indicators to measure scientific performance: a balanced approach," Research Evaluation, Oxford University Press, vol. 19(1), pages 2-18, March.
    7. Kevin M. Murphy & Robert H. Topel, 2006. "The Value of Health and Longevity," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 871-904, October.
    8. Crespi, Gustavo A. & Geuna, Aldo, 2008. "An empirical study of scientific production: A cross country analysis, 1981-2002," Research Policy, Elsevier, vol. 37(4), pages 565-579, May.
    9. Ronald S. Jarmin, 1999. "Evaluating the impact of manufacturing extension on productivity growth," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(1), pages 99-119.
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    Cited by:

    1. Dafna Schwartz & Raphael Bar-El, 2006. "Venture Investments in Israel - A Regional Perspective Dafna Schwartz and Raphael Bar-El Ben-Gurion University, School of Management, Israel," ERSA conference papers ersa06p868, European Regional Science Association.
    2. Schwartz Dafna & Bar-El Raphael & Malul Miki, 2008. "A Joint Virtual Advanced Technology Incubator - A New Pattern of Israeli-Palestinian Economic Cooperation," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 14(2), pages 1-19, July.
    3. Amnon Frenkel & Edward Benedit & Sigal Kaplan, 2011. "Residential choice of knowledge-workers in a 'startup metropolis': the role of amenities, workplace and lifestyle," ERSA conference papers ersa11p208, European Regional Science Association.
    4. Loet Leydesdorff & Wilfred Dolfsma & Gerben Van der Panne, 2010. "Measuring the Knowledge Base of an Economy in Terms of Triple-Helix Relations," Chapters,in: The Capitalization of Knowledge, chapter 11 Edward Elgar Publishing.
    5. Edward Bendit & Amnon Frenkel & Sigal Kaplan, 2011. "Knowledge-workers and the sustainable city: the travel consequences of car-related job-perks," ERSA conference papers ersa11p389, European Regional Science Association.
    6. Amir Shoham & Gil Avnimelech, 2012. "The development of the successful high tech sector in Israel, 1969-2009," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1), pages 53-69.

    More about this item


    knowledge economy; high technology industry; services; R11; R58; O14; O18; O53;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East


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